Courts roundup: HPD files to foreclose on Brooklyn portfolio; Condo board sues Fortis for $14.8M

Courts roundup for Tuesday, May 11, 2021: There were no commercial bankruptcies above $5 million. There was one commercial foreclosure with debts above $5 million.

Please note that court filings are the positions of one party and are not necessarily accurate or complete.

540 West 49th condo board sues Fortis for $14.8M: The condo board at 540West, a condominium at 540 West 49th Street, sued the building’s developer, Fortis Property Group, alleging construction defects. The board seeks $14.8 million. The building was issued its initial temporary certificate of occupancy in May 2015. At another Fortis condo building in Brooklyn, at least four buyers have filed suits seeking to back out of contracts. LINK

HPD sues to foreclose on 51-unit Brooklyn portfolio with $5.2M loans: The NYC Department of Housing Preservation and Development filed to foreclose on a loan with an original principal of $3.7 million secured by six buildings with a total of 51 units in Brooklyn. The management company is Precise Management. There is an additional first mortgage loan with an original principal of $1.56 million held by the company Zebra Stripes Catchall LLC. The loans were originally provided in 2007. HPD purchased the debt in January 2021 from lender Grupo Popular. LINK